A $4 billion write-down, poor sales in China and an uncertain environment around Brexit has forced British automaker Jaguar to weigh heavy on its parent organisation.

Bloomberg reported last week that Jaguar needed to raise $1 billion within 14 months to replace maturing bonds while feeding its investment in the electrified segment that is currently burning through cash.

Jaguar is currently in search of ways to raise $1 billion to replace maturing bonds and feeding its EV investments.

On Thursday, Jaguar’s parent company Tata Motors shocked its investors when it revealed the problems that its British subsidiary was facing in China. The company reported a 35 per cent drop in sales of sports cars and Land Rover SUVs in China in the nine months to December 31, sending the unit to a 273 million-pound ($354 million) loss and knocking as much as 30 per cent off Tata stock.

“Market conditions presently are less favourable in general and our bonds are trading below par, reflecting our recent financial performance,” Birgbauer said by telephone. “We have always said we monitor the debt market and look to issue debt when market conditions are more favourable.”

The company reported a 35 per cent drop in sales of sports cars and Land Rover SUVs in China.

Earlier in January, Jaguar announced that it was slashing 4,500 jobs which were about 10 per cent of its workforce as it responded to poor sales. This was after the company laid off 1,500 employees in 2018. According to prices compiled by Bloomberg, JLR’s 4.5 per cent bonds maturing January 2026 have dropped to a low of 77 cents on the euro, equivalent to a yield of about 8.9 per cent.

Ineffective dealerships in China have stacked up problems for the British company. About 18 per cent of JLR outlets in China are in Tier One cities like Shanghai and Beijing and more than one third have been open for three years or less. The company now plans to overhaul its operations, cutting back on deliveries to reduce stock and investing in measures to boost its brand, logo and slogans.